Purpose

To provide an update on the Draft Budget for
2025-2026 and the Medium Term Financial Strategy (MTFS) and agree
the next steps that will be taken in order to address the financial
pressures faced by the Council over the medium term.

Content

1.     
That the ‘Our Future Council’ Programme as detailed in
section 4 of the report be approved.

 

2.     
The savings proposals outlined in section 4 and Appendices 1 and 2
to  the report be approved.

 

3.     
That authority is delegated to the Director of Finance to action
the necessary virements in order to capture the estimated savings
outlined in the report, including those where further work is
required to quantify the level of saving.

 

4.     
That it be noted that there is a significant financial challenge
over the medium term and that (as set out in the Council’s
Medium Term Financial Strategy) the projected deficit for 2025-2026
is £27.1 million, rising to £32.6 million in 2026-2027
and that therefore further action is required to reduce costs.

 

5.     
That it be noted that there continues to be considerable amount of
risk with regard to the Council’s finances, particularly in
relation to increased costs and demand, and uncertainty regarding
future funding streams for local authorities, over the medium
term.

 

6.     
That it be noted that there is a risk that Government does not
extend the current capital receipts flexibilities beyond the end of
the current financial year and the actions in place to mitigate
this risk as set out in section 5 of the report.

 

7.     
That it be noted that while progress has been made in responding to
the Council’s financial challenge, more work is required to
ensure that the Council it is able to set a balanced budget for
2025-2026 and has a sustainable medium term financial strategy.
Work would continue to identify further savings proposals which would be reported back in due
course.

 

8.     
That it be noted that the
Council would continue to lobby Government with regards to the need
for fairer funding (and multi-year settlements), particularly in
relation to increased demand and costs prevalent in such areas as
children’s and adult’s social care and temporary
accommodation. And that the Council’s budgets and Medium Term
Financial Strategy would continue to be updated in line with any
announced changes in funding.